Stable economic growth key for national breakthroughs

Prime Minister Nguyễn Xuân Phúc yesterday chaired a meeting between the Government and 63 provinces and cities to scrutinise socio-economic performance in 2016, and discuss key tasks and measures for 2017. — Photo VGP

Phúc said that over the past year, the Government has directed drastic measures under the spirit of building a transparent, constructive and active Government and reaped ten outstanding achievements.

Accordingly, the micro economy has remained stable with Gross Domestic Product (GDP) standing at 6.21 per cent. Inflation has been controlled.

The economy’s restructuring has achieved initial results. In the context of the world’s trade falling off, Việt Nam’s export turnover was on the rise of 8 per cent with trade surplus reaching US$2-3 billion.

In particular, total capital of Foreign Direct Investment (FDI) reached a record level. FDI implementation capital was nearly $15.8 billion, increasing 9 per cent over the same period last year while newly-register FDI was $24.4 billion, a year-on-year rise of 7 per cent.

The business climate has improved, ranking 82 out of 190 countries, jumping nine levels over last year.

Vietnamese tourism welcomed an unprecedented number of 10 million foreign tourists, Phúc said.

The PM also pointed out nine shortcomings, including a dramatic plunge in the mineral resources sector and declining crude oil price. Natural disasters such as droughts, floods, saline intrusion, and the environmental incident in the central region resulted in severe consequences.

Traffic accidents, fires and explosions, extremely serious crimes and wrongdoings in officials’ appointments were others listed.

Presenting a draft resolution on tasks and key measures to implement socio-economic development and the State budget plan in 2017, Deputy Prime Minister Vương Đình Huệ highlighted the requirement of ensuring the stability of the macro economy which serves as a foundation for national growth.

Economic restructuring must be attached to three strategic breakthroughs, namely rapid and sustainable growth; boosting administrative reforms, fighting corruption and waste; building a modern administration serving the public and businesses.

According to the resolution, GDP in 2017 is targeted at 6.7 per cent, average inflation of 4 per cent while the State budget at central and provincial levels must be ensured.

“Ministries in the macro economy directing team must follow developments of our big economic partners to have policies adapting to change,” he said.

Besides three strategic breakthroughs, innovation, creativity and science-technology are regarded as the fourth key element to bring advantages and opportunities from the fourth industrial revolution into full play.

The Deputy Prime Minister said that related ministries must roll out measures to attract investment and renew science and technology while fostering export markets.

“The Government is determined to submit to relevant agencies all projects related to public investment restructure, State-owned enterprises restructure and renewal, restructure of credit institutions and dealing with bad debts by the first quarter of next year,” he said.

It is also necessary to improve quality of labour force to meet demands of the economy while strengthening social welfares, public healthcare meeting demands of sustainable development.

The resolution assigned ministries of Agriculture and Rural Development, Construction, Science and Technology, Natural Resources and Environment to take active measures to adapt to climate change and propose projects to adapt to floods.

Localities’ leaders ask for mechanisms

In the afternoon session yesterday, Chairman of Hà Nội’s People’s Committee Nguyễn Đức Chung said that local authorities will follow Government direction in improving the business climate and urban planning while ensuring defence and security of the city.

According to PM Nguyễn Xuân Phúc, one of reasons behind Hà Nội’s traffic problems is the licencing of an excessive number of apartment buildings in the city.

The cabinet leader noted that Hà Nội should implement effective measures to reduce traffic congestion, prevent fires, explosions and reform administrative procedures.

HCM City’s People’s Committee Chairman Nguyễn Thành Phong said that the city aims to set up 50,000 new enterprises next year and have 500,000 firms by 2020.

“The city will mobilise all forces to address pressing issues such as floods, food contamination and pollution,” he said

Phong also proposed to the Government strengthening communication on ASEAN Economic Community and putting priority on State budget and Official Development Assistance to invest in key transport projects and regional development.

Chairman of central Khánh Hòa Province’s People’s Committee Lê Đức Vinh proposed that the Government support the locality with chemicals to prevent epidemics and planting seeds to recover production after floods. The province also called for the Government’s assistance in adding investment for Cam Ranh airport and the North-South highway from the province’s Nha Trang City to Đà Lạt City in Lâm Đồng Province.

A representative of southern Kiên Giang Province, one behalf of local authorities, proposed that the Government issue mechanisms on a special administrative and economic area and building works to prevent saline intrusion. The local authorities will soon ask for the approval of the Standing Committee of the National Assembly for setting up the island district of Thổ Chu.